New Delhi: Gold rose by Rs 230 to Rs 31,750 per 10 grams in the bullion market here on Wednesday on buying on festive buying, while silver shed Rs 450 to Rs 61,000 per kg on selling by stockists.

Traders said buying for the coming festive as well as wedding season pushed the gold prices for the second session in a row. In addition, shifting of funds by investors from weakening equity to rising gold influenced the sentiment.

Gold of 99.9 and 99.5 percent purity advanced by Rs 230 each to Rs 31,750 and Rs 31,550 per 10 grams, respectively. The metal had gained Rs 40 on Tuesday.

Sovereigns rose by Rs 50 to Rs 25,450 per piece of eight grams.

Silver prices, however, declined on reduced offtake by industrial units and coin makers. Profit-selling by stockists following yesterday's sharp gains of Rs 950 also put pressure on silver prices.